CHAPTER 2
THEORETICAL FOUNDATION
are
three specific
objectives
identified
that
will
help
achieve
the
main purpose
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(Wilkinson et al. 2000, p. 8):
1)To support the firm’s day-to-day operations.
Transactions are processed by means of transactions processing systems (TPSs),
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which
are subsystems of
the AIS
that
“performs and
records
the daily
routine
transactions
necessary
to
conduct
business”
(Laudon
&
Laudon
2004,
p.
41).
Users of output from TPS range from managers and employees within the
affected firm to a variety of parties external to the firm.
2)To support decision-making process, particularly by internal decision makers. A
very crucial purpose is to provide information for decision-making. The AIS
facilitates the firm’s managers who are the primary decision makers with
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information processing from where the output would be generated.
3)To fulfill obligations relating to stewardship.
It is compulsory for every firm to fulfill its legal obligations. One of the certain
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obligations is to provide mandatory
information such as financial statements to
external
users,
who
are
the stakeholders-
persons or
firms
having stake
in
the
welfare of the firm.
2.1.3.Relation to the Management Information System (MIS)
Both AIS
and
MIS
are concerned
with
data
and
information
within
an
organization.
In
order
to
avoid
the
misconception
and
misutilization
between
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